The State of Mississippi has announced a settlement with California-based solar energy panel manufacturer Twin Creeks worth $27.7 million, according to The Associated Press.

The settlement is representative of an agreement to repay the costs of construction and equipment spent to lure the panel-producer to Senatobia.

But even though the state has been vindicated for its investment in court, it could still lose money on the failed deal unless it is able to lease the building to a new tenant.

Twin Creeks has agreed to immediately pay back $1.25 million and has agreed to let the state have rights to $10 million in royalties over time.

There is a chance Mississippi could come out ahead: It is scheduled to get a share of any money that Twin Creeks receives from a joint lawsuit, filed with Solyndra in October, against Chinese solar energy panel makers.

In 2010, then-Gov. Haley Barbour persuaded the Mississippi Legislature to loan the company $50 million at zero-interest for 20 years on the promise of creating 500 jobs.

Mississippi obliged and loaned $18 million to build the 85,000-square-foot building in Senatobia.

The announcement comes within days of Tennessee’s own solar disappointment. Clarksville’s Hemlock Semiconductor plant announced Jan. 14 it is laying off 300 of 400 total employees at its new $1.2 billion plant.

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